As a condition of closing your mortgage loan, the mortgage company will ask that you provide them with proof of Hazard Insurance. Hazard Insurance is simply the mortgage company's fancy way of saying Homeowners Insurance. A homeowners policy insures against certain perils or hazards. Typical claims result from the perils of fire, lightning, and windstorm. Rather than list the perils that are insured against, most homeowners policies today are written on a Special Cause of Loss Form. The Special Cause of Loss Form states the policy insures against all causes of direct physical damage unless that cause is specifically excluded within the policy.
In addition to insuring against physical damage to the building, homeowners policies include coverage for outbuildings, personal property, loss of use and personal liability.
If you would like to learn more about insuring your new home, please contact The Russell Agency. Our agents will be happy to help!